The automotive share of the total IC market has never been greater than 9.0% while the communications share of the IC market peaked at 37.2% in 2013, according to IC Insights. In 2020, the communications IC market was 4.7x the size of the automotive IC market.
GaAs IC foundries Win Semiconductors and Advanced Wireless Semiconductor Company (AWSC), and GaAs epi-wafer supplier Visual Photonics Epitaxy Company (VPEC) are gearing up for a seasonal pick-up in shipments for power amplifiers and other RF components for use in smartphones, according to industry sources.
MediaTek has reported revenue climbed about 13% on month and nearly 90% from a year earlier to a record high of NT$41.33 billion (US$1.49 billion) in May 2021.
ASE Technology has reported revenue grew 2.3% sequentially and about 18% on year to NT$42.27 billion (US$1.53 billion) in May 2021, a record high for the same month, and its January-May revenues rose 20.55% on year to NT$203.07 billion, according to company statistics.
Taiwan-based specialists in semiconductor materials analysis, IC test and verification services will see their sales for the second half of the year driven by continuous R&D on advanced fabrication and packaging processes and third-generation semiconductor materials at their clients, according to industry sources.
TSMC, United Microelectronics (UMC), Vanguard International Semiconductor (VIS) and Powerchip Semiconductor Manufacturing (PSMC) are poised to see their second-quarter revenues hit record highs, according to industry sources.
Samsung Electronics has introduced its newest radio frequency (RF) technology based on 8nm process. This cutting-edge foundry technology is expected to provide a "one chip solution," specifically for 5G communications with support for multi-channel and multi-antenna chip designs, according to the vendor.
The PC sector has endured months of shortage of components, and the recent surges in COVID infections in Taiwan and Malaysia are threatening to worsen the component shortfall. Demand for notebooks is expected to remain robust through the end of 2021, and Taiwanese notebook and graphics card makers have reported strong sales for May. And foundry service supply is expected to remain extremely tight throughout 2021, with some clients having already booked capacity for next year and even 2023.
Tokyo Electron has announced the company will introduce its leading-edge Coater/Developer to the imec-ASML joint high NA EUV research laboratory (joint high NA lab) in Veldhoven, the Netherlands. The equipment will be integrated inline with EXE:5000, ASML's next-generation high NA EUV lithography system with a 0.55 numerical aperture (NA), scheduled to be operational in 2023.
With Asia Pacific countries such as Taiwan and Malaysia witnessing COVID-19 infections surging, sources from the upstream supply chain believe shortages of notebook components could worsen.
Taiwan backend houses have seen clear order visibility for wire-bonding packaging services for notebook- and PC-use peripheral chips throughout 2021, while continuing to embrace strong demand from MCU vendors, according to industry sources.
Powerchip Semiconductor Manufacturing (PSMC) has said one of its domestic employees at its factory site in Miaoli County, northern Taiwan has been confirmed infected with COVID-19, which, however, will not affect its business operations.
Taiwan-based pure-play foundries continue to see customers pull in orders despite concerns about overbooking, and will see their fab capacity stay extremely tight throughout 2021, according to industry sources.
Pure-play foundry United Microelectronics (UMC) has reported revenue increased 4.9% sequentially and 16.6% on year to a record high of NT$17.19 billion (US$620 million) in May 2021.
Taiwan's tech firms have intensified coronavirus-prevention measures after COVID-19 hit some local semiconductors plants, with KYEC bearing the brunt of the impacts, raising concerns about the stability of IC supply that has already been troubled by capacity shortage for months. In the IT market, despite speculation that demand for notebooks may weaken in second-half 2021 as a result of easing of the pandemic, ODMs are still confident about notebook orders throughout the year. In India, Lava International reportedly is preparing for IPO, as it seeks to reclaim lost ground in the local handset market.
Taiwan's backend capacity supply is being further constrained by COVID cluster infections at some OSATs including King Yuan Electronics (KYEC) and Greatek Electronics.
Globalfoundries has announced that the foundry and silicon wafer supplier GlobalWafers have struck a US$800 million agreement to add 300mm silicon-on-insulator (SOI) wafer manufacturing and expand existing 200mm SOI wafer production at GlobalWafers' MEMC facility in O'Fallon, Missouri.
Over a dozen employees at logic IC packager Greatek Electronics have been infected with COVID-19, but the company has no plans to suspend its fab operations, according to company CEO Boris Hsieh.
Taiwan's dedicated IC testing house King Yuan Electronics (KYEC) will see its June revenues fall 30-35% as a result of its plants in Miaoli County, northern Taiwan operating at a reduced capacity for two weeks, according to a company statement.
Semiconductor equipment maker Foxsemicon Integrated Technology, an affiliate of the Foxconn Technology Group, has announced suspension of its fab operations in Taiwan for two days starting June 7 after six of its employees were confirmed infected with COVID-19.
Concerns about the stability of Taiwan's IC industry supply chain have been raised again, as clusters of COVID-19 infections have hit several local chip plants.
Taiwan's ICT supply chain, especially semiconductor backend houses have seen rising COVID-19 infections among their workers. Around 180 employees of KYEC had been diagnosed for being infected with the coronavirus as of June 5. However, MediaTek is still optimistic about its sales for the second quarter, despite KYEC, a major backend services partner of the chip supplier, had closure of production lines for two days. MediaTek is working closely with KYEC to mitigate the impact. On the other hand, demand for miniLED backlighting boards has been picking up as miniLED-based gaming and creator notebooks have seen rising sales.
MediaTek, a major customer of OSAT King Yuan Electronics (KYEC) which halted its chip production for two days due to a cluster of COVID-19 infections at its factory site in northern Taiwan, has reiterated its sales guidance for the second quarter of 2021.
